The priest's company is one of three service providers facing charges over a scam totalling R100 million

THE Nelspruit magistrate's court yesterday postponed a case against a service provider who allegedly defrauded the State of millions of rands.

Freddy Mhlanga, the director of Eden Moon Trading, is one of three service providers facing charges in a R100 million scam.

It is alleged that Mhlanga and two other service providers claimed money from the province's Agriculture Department for deliveries not made.

Together with Kgopolang Business Enterprises director December Mambane and SS Ndlovu's Stephan Ndlovu, Mhlanga's company faces fraud charges involving R31 million.

Mhlanga, who is a priest of the Emanuel Church in Nelspruit, allegedly converted kilograms into tons on the delivery notes attached to all payments.

Head of the agriculture department Nelisiwe Sithole said: "The converted tons were found to be 298,15 tons in excess of what should have been claimed for.

"The total costs of these excess tons, at Eden Moon Trading's rate of R1750 per ton, amounted to R521762, 50."

She said as per contracts signed by all service providers, one ton consists of 50 bales of 20kg each.

Eden Moon is one of nine service providers that were appointed by the department to distribute fodder to farmers in 2006 after veld fires ravaged many parts of the province.

The fire affected many farmers, forcing the State to release R31 million in drought relief.

But most affected farmers did not benefit from this money, prompting the department to engage Grant Thornton Business Risk Services to conduct an audit.

The investigators discovered that the three service providers were paid R17 million for work not done.

Mhlanga's case was postponed to November 10.